When controversy-embroiled Hockey Canada was forced to cough up whopping $1.6 million as damage control

In the midst of a relentless public relations nightmare, Hockey Canada found itself in dire need of damage control, resorting to a controversial solution that raised eyebrows.

The embattled organization, grappling with a scandal that led to the resignation of its CEO and entire board, enlisted the services of a crisis communications firm at a staggering cost of $1.6 million.

The revelations came to light during a parliamentary hearing where Hockey Canada's senior vice president, Pat McLaughlin, and former president and CEO, Bob Nicholson, faced tough questions from federal MPs. The organization's financial woes were evident, with an anticipated loss of up to $24 million in sponsorship, with major partners severing ties.

The decision to hire Navigator, a crisis communications firm, coincided with the departure of sponsors, increased media scrutiny and need to address calls for change. However, critics argue that the exorbitant expenditure on PR efforts demonstrates Canada's misguided priorities rather than a genuine commitment to rectifying its culture of secrecy and cover-ups.

During the hearing, Nicholson himself admitted that the organization fell short in combating a culture of silence and creating a safe environment. He regretted not implementing more transparency during his tenure and acknowledged the need for better guidelines to address sexual harassment issues.

The revelations shed light on Canadian Hockey's inadequate governance practices and lack of financial transparency. A governance report, costing $1.7 million, criticized the organization's handling of multimillion-dollar reserves and communication of settlements, particularly those related to sexual assault allegations.

As Hockey Canada attempts to salvage its tarnished reputation, the exorbitant expenditure on crisis communications serves as a stark reminder of its failure to address systemic issues.

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Consequences for Hockey Canada

Hockey Canada found itself on a daunting journey to repair its shattered relationships with stakeholders and corporate sponsors after a damaging scandal.

Rebuilding trust with influential sponsors like Bauer, Canadian Tire, Telus, Nike, Tim’s Hortons, Scotiabank, and Chevy Canada, among others, was challenging, as the organization grapples with a projected $26 million financial blow.

Acknowledging the gravity of the situation, Canadian Hockey initiated changes to address the crisis. An interim management committee was established, and a CEO search was underway.

The organization aims to enhance diversity in its leadership, revise hiring processes and implement limited terms for board members. However, rebuilding ties with provincial and regional governing bodies, which oversee minor hockey nationwide, remains a significant hurdle, though.

Furthermore, scrutiny from high-profile stakeholders like the Canadian national women’s hockey team intensifies the pressure for change within Hockey Canada's leadership structure.

The reopening of investigations by the London Police, Hockey Canada and the NHL into the 2018 sexual allegations adds another layer of complexity to the organization's recovery efforts.

Additionally, the Halifax Police investigated allegations of a group sexual assault involving the 2003 Canadian World Junior team.